17.3 Cash from operating activities
　　Cash generated from operations
　　Two methods of calculating cash from operations:
　　●Direct method
　　●Indirect method
　　Direct method:
　　This method used information contained in the ledger accounts of the company to calculate the cash from operations figure.
　　$　　　　 $
　　Cash sales　 　　　　　　　　　　　　　 X
　　Cash received from debtors　　　　　　         X
　　X
　　Less:
　　Cash purchases　　　　　　 X
　　Cash paid to suppliers　　       X
　　Cash expense　　　　　　　 X
　　(X)
　　Cash generated from operations　　　　 X
　　Indirect method
　　The net profit or loss for the period is adjusted for the following items:
　　17.3 Cash from operating activities
　　Cash generated from operations
　　Two methods of calculating cash from operations:
　　●Direct method
　　●Indirect method
　　Direct method:
　　This method used information contained in the ledger accounts of the company to calculate the cash from operations figure.
　　$　　　　 $
　　Cash sales　 　　　　　　　　　　　　　 X
　　Cash received from debtors　　　　　　         X
　　X
　　Less:
　　Cash purchases　　　　　　 X
　　Cash paid to suppliers　　       X
　　Cash expense　　　　　　　 X
　　(X)
　　Cash generated from operations　　　　 X
　　Cash from operating activities may also include: